American Express Company (AXP)

The base salary for each NEO reflects his or her position, responsibilities and contributions relative to other executives
and available market data. Salaries are typically reviewed, but not necessarily changed, in January of each year as part of our performance and compensation review process, as well as at other times to recognize a promotion or change in job
responsibilities or market positioning.

ProgramAs the smallest part of a competitive pay package, the Company provides NEOs and other employees with base salary. The base salary for each NEO
reflects his or her position, responsibilities and contributions relative to other executives and available market data. Salaries are typically reviewed, but not necessarily changed, in January of each year as part of our performance and
compensation review process, as well as at other times to recognize a promotion or change in job responsibilities or market positioning.

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2007 Base SalariesIn January 2007, we increased the base salaries for each of the NEOs from 2006 levels after a review of competitive market data and
individual contributions. In addition, during the course of the year, we further increased the base salaries of Mr. Kelly (from $725,000 per year to $850,000 per year, in connection with his promotion to President of the Company),
Mr. Gilligan (from $725,000 per year to $825,000 per year, in connection with his promotion to Vice Chairman of the Company) and Mr. Henry (from $370,000 per year to $625,000 per year, in connection with his promotion to Chief Financial
Officer of the Company). Salary information for the NEOs can be found in the Summary Compensation Table found on page 39.

ProgramAs the smallest part of a competitive pay package, the Company provides NEOs and other employees with base salary. The base salary for each NEO
reflects his or her position, responsibilities and contributions relative to other executives and applicable market data provided by outside consultants. Salaries are typically reviewed, but not necessarily changed, in January of each year as part
of our performance and compensation review process, as well as at other times to recognize a promotion or change in job responsibilities or market positioning.

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2006 Base SalariesBase salaries for the NEOs in 2006 were not changed from 2005, except for Louise Parent, our Executive Vice President and General
Counsel, whose annual salary was increased from $440,000 to $500,000 in January 2006 after a review of competitive market data and individual contributions.